THE Commission on Audit (COA) wants an explanation from Southern Leyte Gov. Damian G. Mercado and the provincial Bids and Awards Committee (BAC) why COVID-19 procurement contracts went to suppliers that charged more than double the fair market price for medical equipment and supplies.
In their 2020 report on the province, state auditors warned that the transactions could be issued notices of disallowance due to violations of procedures under the Government Procurement Policy Board (GPPB) Circular No. 01-2020.
The audit team said the GPPB directive required agencies to canvass suppliers that offer the most advantageous prices to ensure optimal use of government funds during the pandemic but Southern Leyte failed to do so.
“Preliminary market scanning of prices prescribed in Section 5 (b) of the GPBB circular… was not done by the province before the procurements of PPAs (projects, programs, and activities) amounting to P61,823,927.49 to mitigate the adverse effects of the COVID-19 pandemic, hence the government was not assured of the most advantageous price,” it reported.
The amount consists of P24.3 million from the Bayanihan Grant to Provinces (BGP) Fund, and P37.53 million from the Local Disaster Risk Reduction and Management (LDRRM) Fund which was realigned by the provincial government to respond to the public health crisis.
Records showed P21.995 million from the BGP Fund were used for the purchase of medical ventilators, a portable x-ray machine, medical supplies, devices reagents, and testing kits, while P1.89 million was spent on meals of frontline responders.
On the other hand, P23.77 million from the LDRRM was used to buy personal protective equipment (PPE), P7.54 million on rice procurement and distribution, P4.136 million on two disinfection machines, and P1.855 million on groceries.
The audit team said it conducted its own market survey on several items purchased by Southern Leyte and found that the province paid more than double the cost set by other suppliers.
It said a set of portable x-ray machine acquired from Isomedical Ventures Inc. at P7.975 million was available online on Carousel at only P1.5 million, or a price difference of P6.475 million.
Thirty (30) gallons of disinfectant solution paid at P1.048 million from Arcorp Medical Enterprises could be had at P158,456.40 or a price variance of P889,293.60.
Four (4) Achieva PS ventilators bought at P590,000 each, or a total of P2.36 million, from Leean Medical and Surgical Supply was also sold on eBay at P167,405 each or P669,620 for all four, meaning a difference of P1.69 million.
